It’s one of the Asian economies most exposed to surging prices around the world, because it depends on other countries for many types of food, Nomura economists warned in a June report. One reason South Korea is facing such problems is that it imports almost half of its food, according to the EIU. Now, your small mom-and-pop stores are not going to be able to enjoy that advantage, which means they are looking at their costs going much higher.” “They’re able to buy more products and consequently ask for a better rate from their suppliers. “If you look at how those chain businesses are able to sell at these low rates, that’s basically due to economies of scale,” said Barsali Bhattacharyya, manager of industry briefing at the Economist Intelligence Unit (EIU). The hypermarket has created pressure on other stores to follow suit on its popular discounts. The August sale that Clark Park attended at Homeplus was for what the chain called “dangdang chicken,” a promotion of fried chicken for about a third of the price most retailers offer.Ī Homeplus worker putting buckets of fried chicken out for sale. While the difference may seem small, it could easily mean customers will have to fork out nearly $22 for a simple meal, Yunjin Park told CNN Business: “Chicken, which used to be comfort food for Koreans, is now no longer an easy-to-order menu without hesitation.”īy contrast, local hypermarkets are going in the other direction. Leading chicken chains have raised menu prices by an average of 2,000 Korean won ($1.50), according to Yunjin Park, a senior research analyst of food and nutrition at Euromonitor, citing the “rising prices of ingredients.” This led to a roughly 10% to 15% jump in the price of fried chicken, she added. Sellers have taken vastly different approaches to the situation in recent months. In response, he added, some restaurants have started using robots to bring labor costs down. “All costs related to fried chicken are rising very fast,” said Jeong Woo Park, the Nomura economist, adding that vendors are being hit by soaring costs of oil, rent, labor, delivery services and even chicken feed. This kind of devotion has created a conundrum for stores, which must take care of their bottom lines without alienating customers. ![]() South Korea is the world’s third largest market for fried chicken, outpaced only by the far more populous United States and China, data from market research provider Euromonitor International shows.įried chicken on display at a Homeplus store in South Korea. ![]() That’s because one in every 20 restaurants is a chicken eatery, according to the government. Many people see it as a must-have snack at sporting events, and it’s not uncommon for customers to pick it up several times a month.Īnyone visiting the country is bound to stumble on a local chicken and beer, or “chimac ,” joint. They also spotlight how the country relies on other nations for much of its food.įried chicken is a huge cultural touchpoint in South Korea, similar to British fish and chips, which have also gotten more expensive this year. People around the world have been dealing with similar struggles in recent months as global food prices soared - and scenes like the chicken run at Homeplus are a reminder of how households are adjusting to broader inflation, which has hit 5.7% in South Korea. The average cost of fried chicken in South Korea was up 11.4% in August compared to the same month a year ago, outpacing price jumps of other popular dining items such as kimchi stew or beef barbecue, according to government data.Ĭonsumers might be feeling an even bigger pinch, depending on how much restaurants or supermarkets pass on their costs: In some cases, retail chicken prices have “gone up by more than 50%” over the past two years, according to Jeong Woo Park, a South Korea economist at Nomura.
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